Government accused of lack of support for Irish enterprises

The results of a major survey by ISME, the Irish Small & Medium Enterprises Association, reveals that the majority of SME owner-managers do not believe that the current Government is pro-enterprise. Adding credence to this belief, less than a quarter of all enterprises are clients of any of the development agencies, despite the fact that more than half need assistance.

The survey of over 700 companies confirmed that less than one in five SMEs (18%), believe that the current Government policy is pro-enterprise. Worryingly, the vast majority, (89%), feel that Government policy is mainly directed towards Foreign Direct Investment, with only 2% seeing it directed towards SMEs.

Over half of SMEs (54%), have never been a client of any development agency even though these agencies are in place to support indigenous business.  Amazingly only 13% of companies are currently clients of FAS, the agency responsible for training and employment supports, while a significant 65% have never been a client. 

According to ISME Chief Executive, Mark Fielding, 'these results are a shocking indictment of the current Government and their policies, clearly showing that the SME sector feel seriously let down with regard to the promotion and support of the sector. The "multinational at all costs" policy, with its photo opportunities for ministers continues to hold centre stage, with the crumbs being left to local small and medium businesses.'

'At the end of the day it is SMEs that will create a sustainable indigenous economy, not larger multi-nationals, subject to the whim of their foreign shareholders. Of course the two should co-exist, but the bias at the moment is heavily weighted against the former.'

'Little if any effort has been made in addressing the main concerns of smaller business or in promoting and financing specific SME development agencies. Access to finance, late payments, cost competitiveness and specific policies that are tailored to the requirements of the SME owner-manage have been relegated. Compare this to the supports and funding provided to the banks, big business and big property developers at home and the supports provided by competitor countries to their beleaguered SMEs,' continued Fielding.

According to ISME, the agenda for entrepreneurship in Ireland must be to place entrepreneurs and their requirements at the centre of policy that would include the following aims:

*A comprehensive review of the role of the enterprise development agencies to ensure that there is support available to all enterprises.
*An increase in promotion of SME Development Agencies
*Support levels from the agencies should at least match the best that can be secured in other EU Countries and our agencies should be benchmarked against the 'best of breed' globally.

'For far too long the SMEs have been the Cinderella sector. It is essential that there is a fundamental change in Government attitude towards smaller companies and that the sector is viewed in its totality, for the significant contribution it makes to employment, revenues, economic growth, purchasing power and to society as a whole. This should be at the centre a National Enterprise Strategy so oft discussed at Government without any appreciable action being taken,' Fielding concluded.